If you want to negotiate your taxes, the first thing you need to do is find a qualified tax expert. You will not be able to negotiate taxes well on your own, and you will need the help of a trained professional. A good tax professional will be able to gather all the important information, fill out all the necessary paperwork, and handle all the communication with the Internal Revenue Service. There are many ways in which tax negotiations can work out in your favour.
"Offers in Compromise" is the name of a programme. Through a tax professional you've hired, this programme lets you make an offer to the Internal Revenue Service for less than the amount of taxes you owe. Sometimes, the Internal Revenue Service will take you up on this offer, and you'll be able to pay off your debt to the IRS for a lot less than what you owed in the first place.
If you do decide to talk about your taxes with the Internal Revenue Service and you want to make an Offer in Compromise, you need to know that the IRS looks at three things when deciding whether or not to accept it. The Internal Revenue Service will look at a number of things to see if any of the following apply to your case: if there is any doubt about whether or not you actually owe the liability, if you can afford to pay the liability if you do owe it, and if the settlement would help the tax system work better.
Before 1992, it was less likely that the Internal Revenue Service would settle a tax debt for less than what was actually owed. But the Internal Revenue Service is accepting more and more Offers in Compromise because new rules and procedures have been put in place to settle back taxes.
Tax negotiations are often used to settle back tax issues, but they can also be used in other situations. When the Internal Revenue Service says a taxpayer owes a certain amount of tax and the taxpayer doesn't agree, the taxpayer may use tax negotiations. Tax negotiations can also be used to give more time to pay back taxes and lower the amount of interest that needs to be paid.
Only in the worst cases should you try to negotiate your tax bill. A tax negotiation is a tool, and it should be used as such. Do not think that if you hire a tax expert every April, you can get out of paying any taxes you may owe. The Internal Revenue Service will not like it if you use the system in this way.
If tax negotiations might be your only chance, make sure the tax pro you hire is licenced and has experience with situations like yours. They could end up saving you a lot of money and a lot of financial stress.
